...Week 5 - Case Study Analysis 3 Cherie A. Parker University of the Potomac BUS 503 – Managerial Finance November 25, 2014 Professor Robert Shah Abstract Larissa Warren and Dan Ervin have been discussing the future of East Coast Yachts. The company has been experiencing fast growth, and the future looks like clear sailing. However, the fast growth means that the company’s growth can no longer be funded by internal sources, so Larissa and Dan have decided the time is right to take the company public. To this end, they have entered into discussions with the investment bank of Crowe & Mallard. The company has a working relationship with Robin Perry, the underwriter who assisted with the company’s previous bond offering. Crowe & Mallard have helped numerous small companies in the IPO process, so Larissa and Dan feel confident with this choice. Robin begins by telling Larissa and Dan about the process. Although Crowe & Mallard charged an underwriter fee of 4 percent on the bond offering, the underwriter fee is 7 percent on all initial stock offerings of the size of East Coast Yachts’ initial offering (Ross etal, 2013). Introduction Although Crowe & Mallard charged an underwriter fee of 4 percent on the bond offering, the underwriter fee is 7 percent on all initial stock offerings of the size of East Coast Yachts’ initial offering. Robin tells Larissa and Dan that the company can expect to pay about $1,800,000 in legal fees and expenses, $15,000 in SEC registration...
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...401(k) Account at East Coast Yachts Elijah Clark Walden University 401(k) Account at East Coast Yachts A new company employee is seeking to sign up for the company’s 401(k) plan. The individual is trying to determine which investment option is the best. After gaining information from a colleague, the employee decides to invest in a diversified portfolio. However, the employee is confused on whether to select the Vanguard 500 index fund or equity mutual funds. Assignment Questions The 401(k) Account at East Coast Yachts mini case asks to provide details regarding implications drawn from a provided graph for mutual fund investors. Additionally, the mini case asks whether the graph is consistent with market efficiency. Furthermore, the mini case seeks to understand the reason for making an investment decision for the equity portion of a 401(k) account. Graph for Mutual Fund Investors The general desire for an investor is to receive a return on their investments. The mutual fund has to outperform the market return in order to produce profits. However, mutual funds are unlikely to outperform the market because they usually have average market returns before expenses (Ross, Westerfield, & Jaffe, 2013). Considering the fund managers are responsible for making decisions and achieving results, they often take a high fee, which adds to expenses and deducts from the funds overall value. Additionally, no more than half of equity mutual fund investors are likely to outperform...
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...Closing case: Chapter 4 Tiffany McFatter BUS 650 Instructor Stanley Atkinson January 7, 2013 1. How does Ben’s age affect his decision to get an MBA? There are several factors that go into deciding to get an MBA. One of these factors for Ben is his age. Since he is currently 28 years old, and estimates that he only has about 40 years left to work, he has to decide if giving up two years of paid work will be worth it in the long run to go back to graduate school to obtain his MBA. If he goes back to school at this age he will be giving up on a 3 percent increase over a two year period. He will also lose money that could go into his retirement fund. Ben has also been out of school for 6 years. Will he be able to return to the school environment and adapt as easily as he did for his undergraduate degree? 2. What other, perhaps nonquantifiable factors, affect Ben’s decision to get an MBA? There are several nonquantifiable factors that can affect Ben’s decision on furthering his education. First his family status would qualify as one of these factors. Having a family to provide for can hinder a decision to advance in education. If Ben is the bread-winner or sole contributor to his family’s finances then he may not be able to obtain his goal because of the monetary contributions that he would be giving up. Another factor that may have influence is the prestige that Ben would fill if he completed his MBA and held the career position that he has always dreamed about. Prestige...
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...Your 401(k) Account At East Coast Yachts 1. The implications that can be drawn from the given graph are: a. The actively managed funds have consistently outperformed the low fee index funds over the past decade of January 1977 through December 1986. b. Although the economic conditions over the decade in review is not mentioned in the case study, based on the fluctuations in the up and down cycles in the funds return suggest that it is following the economic cycle of the given time period. This trend is also apparent in the S&P 500 over the same time periods which offered a return of 1.09% over the decade. (Yahoo Finance, 2012). 2. The graph is not consistent with market efficiency. The efficient market hypothesis states that an investor cannot consistently outperform the market over a long period of time. To consider the market efficient all respected information should be made public and reflected in the current price of the asset (Ross, Westerfield, and Jaffe, 2010). According to the Case Study graph, the actively of the managed funds have consistently outperformed the broader market including the S&P 500 over the given time period. According to Ross, Westerfield and Jaffe (2010), Public skepticism of market efficiency is due to fluctuations in the day to day stock prices. These fluctuations however are not inconsistent with efficiency. Stocks in an efficient market will adjust to new market and economic data by changes in the stock...
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...Mergers and Acquisitions CHAPTER 21 OPENING CASE I n April 2007, Netherlands-based ABN AMRO and U.K.-based Barclays announced a merger that would create the world’s largest asset manager as well as one of the world’s five largest banks. The value of the deal was about €67 billion ($91.07 billion). Under the terms of the merger, Barclays would offer 3.225 shares of the new company for each share held by ABN AMRO shareholders. Also, ABN AMRO agreed to sell LaSalle Bank to Bank of America for $21 billion, which would result in a €12 billion distribution to shareholders. How do companies like ABN AMRO and Barclays determine whether a merger is a good idea? This chapter explores reasons that mergers should take place, and, just as important, reasons why they should not. There is no more dramatic or controversial activity in corporate finance than the acquisition of one firm by another or the merger of two firms. It is the stuff of headlines in the financial press, and it is occasionally an embarrassing source of scandal. The acquisition of one firm by another is, of course, an investment made under uncertainty, and the basic principles of valuation apply. One firm should acquire another only if doing so generates a positive net present value for the shareholders of the acquiring firm. However, because the NPV of an acquisition candidate can be difficult to determine, mergers and acquisitions, or M&A activities, are interesting topics in their own right. Some of the special...
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...Electronic Commerce, 7th Edition Solutions 6-1 Electronic Commerce, 7th Edition 14188-37032 Chapter 6 Solutions Review Questions 1. In approximately 100 words, define the term “reserve price” and explain how the use of a reserve price can affect the progress and outcome of an auction. Answer: A reserve price is a minimum; even though the bid may start at a very low price, there will be no winner unless the bids reach a reserve price set by the seller. If the reserve is set too high, no one may win the auction. 2. Identify an industry (or a product within an industry) in which buyers would find reverse auctions to be a useful procurement tool. In about 300 words, explain why your chosen industry or product would be a good candidate for a reverse auction procurement process. Answer: One industry that may be considered is the construction industry where bidders are invited to offer value engineering, innovations, and alternate design ideas that could save money over the life cycle of a project. 3. In about 300 words, describe the services offered by an online auction escrow service. Name one advantage and one disadvantage of using this type of an escrow service. Answer: An escrow service will hold the buyer’s funds until the buyer has received the merchandise and is satisfied; this is primarily used for high ticket items. The advantage to the buyer is that they can be sure they are getting what they paid for in the auction. The disadvantage is that a buyer can be dissatisfied...
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...On rare occasions, cargo can be stowed directly atop the hatch covers. Under Deck Stowage Usually empty flat rack containers are stacked in the second or third tier from the top side-by-side in the hold and cargo is loaded on top of these. One of NYK's many strong points is the long years of experience which has built up in the safe stowage of cargo such as in dispersing loads and securing. The size of holds depends on the vessel. Just as an example, when 40 foot flat rack containers are lined up in groups of four it is possible to make effective use of a 40' x 32' space. Heavy cargo that exceeds the weight restriction on gantry cranes is handled by floating cranes. Since direct loading and direct delivery are the rule in such cases, loading and unloading are coordinated with the vessel's cargo handling schedule. Therefore it is necessary to fully coordinate matters with all concerned beforehand. In shipping the term Break bulk derives from the phrase breaking bulk Break bulk products are mainly steel, lumber and wood. Before containers, goods were shipped in individual boxes, barrels, bales, bags, crates and many other methods of enclosing goods for a long sea voyage. Each item had to be manhandled, making the job of loading and off-loading cargo one of the most labour intensive of the maritime trades. The storage of items in the holds was a specialised business, not only for the preservation of the cargo, but to ensure that the ship was not subject to the shifting...
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...After legal costs and other expenses, the remaining $417,000 was put in a special trust to care for Mrs. Shank. However, six years later the providers of Mrs. Shank’s health plan, Wal-Mart, sued the Shanks for the $470,000 it had spent on her medical care. Wal-Mart was fully entitled to the money; in the fine print of Mrs. Shank’s employment contract it said that money won in damages after an accident belonged to Wal-Mart. A federal judge had to rule in favor of Wal-Mart, and the family of Mrs. Shank had to rely on Medicaid and social-security payments for her round-the-clock care. Wal-Mart may be reversing the decision after public outcry. However this case pinpoints Wal-Mart’s often criticized treatment of employees as a commodity and its sometimes inhuman business ethics. 9 Trafigura Dumping Toxic waste on the Ivory Coast and gagging the media Earlier in the year, there was media frenzy in the U.K. over celebrities getting court injunctions to silence the press from reporting on their various misdeeds and grubby encounters. This story actually stems from a far more serious beginning, in 2006. Trafigura is a multinational formed in 1993, trading in base metals and energy, including oil. It makes almost 80 billion USD a year. In 2006, it caused a health crisis affecting 108,000...
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...500 extraordinary islands G R E E N L A N D Beaufort Sea Baffin Bay vi Da i tra sS t a nm De it Stra rk Hudson Bay Gulf of Alaska Vancouver Portland C A N A D A Calgary Winnipeg Newfoundland Quebec Minneapolis UNITED STATES San Francisco Los Angeles San Diego Phoenix Dallas Ottawa Montreal ChicagoDetroitToronto Boston New York OF AMERICA Philadelphia Washington DC St. Louis Atlanta New Orleans Houston Monterrey NORTH AT L A N T I C OCEAN MEXICO Guadalajara Mexico City Gulf of Mexico Miami Havana CUBA GUATEMALA HONDURAS b e a n Sea EL SALVADOR NICARAGUA Managua BAHAMAS DOMINICAN REPUBLIC JAMAICA San Juan HAITI BELIZE C a r PUERTO RICO ib TRINIDAD & Caracas N TOBAGO A COSTA RICA IA M PANAMA VENEZUELA UYANRINA H GU C U G Medellín A PAC I F I C OCEAN Galapagos Islands COLOMBIA ECUADOR Bogotá Cali S FR EN Belém Recife Lima BR A Z I L PERU La Paz Brasélia Salvador Belo Horizonte Rio de Janeiro ~ Sao Paulo BOLIVIA PARAGUAY CHILE Cordoba Santiago Pôrto Alegre URUGUAY Montevideo Buenos Aires ARGENTINA FALKLAND/MALVINAS ISLANDS South Georgia extraordinary islands 1st Edition 500 By Julie Duchaine, Holly Hughes, Alexis Lipsitz Flippin, and Sylvie Murphy Contents Chapter 1 Beachcomber Islands . . . . . . . . . . . . . . . 1 Aquatic Playgrounds 2 Island Hopping the Turks & Caicos: Barefoot Luxury 12 Life’s a Beach 14 Unvarnished & Unspoiled 21 Sailing...
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...Hills, California on November 22, 1949 at the age of fifty-six. Copyright: This work is available for countries where copyright is Life+50. Note: This book is brought to you by Feedbooks http://www.feedbooks.com Strictly for personal use, do not use this file for commercial purposes. 2 "Off there to the right—somewhere—is a large island," said Whitney." It's rather a mystery—" "What island is it?" Rainsford asked. "The old charts call it `Ship-Trap Island,"' Whitney replied." A suggestive name, isn't it? Sailors have a curious dread of the place. I don't know why. Some superstition—" "Can't see it," remarked Rainsford, trying to peer through the dank tropical night that was palpable as it pressed its thick warm blackness in upon the yacht. "You've good eyes," said Whitney, with a laugh," and I've seen you pick off a moose moving in the brown fall bush at four hundred yards, but even you can't see four miles or so through a moonless Caribbean night." "Nor four yards," admitted Rainsford. "Ugh! It's like moist black velvet." "It will be light enough in Rio," promised Whitney. "We should make it in a few days. I hope the jaguar guns have come from Purdey's. We should have some good...
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...case study www.cimaglobal.com/globalbusinesschallenge Merbatty Boat Case Market overview The developing luxury boat building industry is one with a growing customer base of wealthy, successful individuals and corporate clients. The industry is mostly concentrated in Europe and the USA, although new boat building companies have recently entered the market in Australia and some areas of Asia. Classification of the market and its products can be done in different ways, but the most common are by boat length, engine performance or by hull type. In 2012, the luxury boat building industry generated approximately $5.5 bn in revenues and delivered nearly 3,600 engine-powered boats globally. The material in this case is confined to boats powered by engines and does not include sailing yachts, which are a completely separate market segment. There are a number of major international builders of luxury boats, which together produce a range of over 180 different models. Most luxury boats have living accommodation and crew quarters. The selling prices for these luxury boats range from around $0 4m to over $9m. Each boat type has a choice of different cost options, depending on customers’ specifications and engine size. Boat building companies typically appoint agents to secure sales from the end customer. The sales agent is the ongoing link with the customer from initial contact until delivery of the boat. Most boat building companies have agents in a wide variety...
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...CREATE Research Archive Non-published Research Reports 2007 A Brief Analysis of Threats and Vulnerabilities in the Maritime Domain Niyazi Onur Bakir CREATE, nbakir@usc.edu Follow this and additional works at: http://research.create.usc.edu/nonpublished_reports Recommended Citation Bakir, Niyazi Onur, "A Brief Analysis of Threats and Vulnerabilities in the Maritime Domain" (2007). Non-published Research Reports. Paper 5. http://research.create.usc.edu/nonpublished_reports/5 This Article is brought to you for free and open access by CREATE Research Archive. It has been accepted for inclusion in Non-published Research Reports by an authorized administrator of CREATE Research Archive. For more information, please contact gribben@usc.edu. A BRIEF ANALYSIS OF THREATS AND VULNERABILITIES IN THE MARITIME DOMAIN1 N.O. BAKIR University of Southern California, Center for Risk and Economic Analysis of Terrorism Events (CREATE) 3710 McClintock Avenue, RTH 322, Los Angeles, CA 90089-2902 USA Abstract The attacks of September 11 have exposed the vulnerability of the American homeland against terrorism. Terrorists have already expressed their intentions to continue their aggression towards United States. Their goal is to incur maximum economic damage, inflict mass casualty, spread unprecedented fear among citizens and thus destabilize the nation to further their agenda. Many critical sites lay across US maritime borders, all of which could be potential targets to accomplish these goals...
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...UNCTAD Review of MaRitiMe tRanspoRt 2014 For further information on UNCTAD’s work on trade logistics, please visit: http://unctad.org/ttl and for the Review of Maritime Transport 2014: http://unctad.org/rmt E-mail: rmt@unctad.org Layout and printed at United Nations, Geneva 1418912 (E)–November 2014–2,062 UNCTADRMT2014 United Nations publication Sales No. E.14.II.D.5 UNITED NATIONS ISBN 978-92-1-112878-9 Photo credit : © Jan Hoffmann To read more and to subscribe to the UNCTAD Transport Newsletter, please visit: http://unctad.org/transportnews U n i t e d n at i o n s C o n f e r e n C e o n t r a d e a n d d e v e l o p m e n t Review of MaRitiMe tRanspoRt 2014 U n i t e d n at i o n s C o n f e r e n C e o n t r a d e a n d d e v e l o p m e n t Review of MaRitiMe tRanspoRt 2014 New York and Geneva, 2014 REVIEW OF MARITIME TRANSPORT 2014 ii NOTE The Review of Maritime Transport is a recurrent publication prepared by the UNCTAD secretariat since 1968 with the aim of fostering the transparency of maritime markets and analysing relevant developments. Any factual or editorial corrections that may prove necessary, based on comments made by Governments, will be reflected in a corrigendum to be issued subsequently. * ** Symbols of United Nations documents are composed of capital letters combined with figures. Use of such a symbol indicates a reference to a United Nations document. * ** The designations...
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...April 2013 Current Affairs Study Material INTERNATIONAL China, Russia, Pakistan discuss Afghanistan situation Officials from China, Russia and Pakistan on 3 April 2013 held talks on the issue of coordination between their positions on Afghanistan.The officials from three nations backed the Shanghai Cooperation Organisation (SCO) that is grouping to play a great role in Afghanistan after the withdrawal of NATO Forces in 2014. These talks were held to enhance coordination. The talks followed a similar meeting India, China and Russia held in Moscow recently, reflecting the delicate balancing act — and increasingly complicated regional dynamics — as different countries look to push their interests in the lead up to 2014. Malaysia PM Dissolves Parliament On 3 April Malaysian Prime Minister Najib Razak has dissolved the Parliament ahead of a general election.This dissolution will pave the way for the 13th general election.The elections have to be held before June 2.The Barisan Nasional coalition that has ruled Malaysia since independence in 1957 is expected to face a stiff challenge in the polls from the opposition three-party Pakatan Rakyat (People’s Pact). Tammam Salam named as Lebanon new Prime Minister On 6 April well-known Sunni lawmaker Tammam Salam has been named Lebanon’s new prime minister , after receiving overwhelming parliamentary support.His appointment comes after previous prime minister Najib Mikati resigned and effectively brought down his Hezbollah-dominated...
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...of the new global super-wealthy. BY NICHOLAS SHAXSON Up until the 18th century, Knightsbridge, which borders genteel Kensington, was a lawless zone roamed by predatory monks and assorted cutthroats. It didn’t come of age until the Victorian building boom, which left a charming legacy of mostly large and beautiful Victorian houses, with their trademark white or cream paint, black iron railings, high ceilings, and short, elegant stone steps up to the front door. This will not be the impression a visitor now gets as he emerges from the Knightsbridge subway station’s south exit. He will be met by four hulking joined-up towers of glass, metal, and concrete, sandwiched between the Victorian splendors of the Mandarin Oriental Hotel, to the east, and a pretty five-story residential block, to the west. This is One Hyde Park, which its developers insist is the world’s most exclusive address and the most expensive residential development ever built anywhere on earth. With apartments selling for up to $214 million, the building began to smash world per-square-foot price records when sales opened, in 2007. After quickly shrugging off the global financial crisis the complex has come to embody the central-London real-estate market, where, as high-end property consultant Charles McDowell put it, “prices have gone bonkers.” From the Hyde Park side, One Hyde Park protrudes aggressively into the skyline like a visiting spaceship, a head above its red-brick and gray-stone Victorian surroundings...
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